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International Journal for Management Science and

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March|2013

ISSN 2320-8848 (Online)

ISSN 2321-0362 (Print)

Management Science and Technology

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March|2013 www.ijmst.com vol.1 Issue 1

International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 1

ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

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ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Persons Associated Editorial Board

Mrs. Vaijayanti Mala (India) PhD (Cont.), D.ed, B.ed, M.Com, BCom Dr. IBEM, Eziyi Offia (Nigeria)

PhD (Architecture), Full Registration by ARCON, MSC

(Architecture), BSC (Architecture)

Dr. K.K.Patra (India)

FDPM-IIMA, PhD, PGDM, PGDFM, MBA, LL.B, M.Com.

Muhammad Usman (Islamabad) Doctorate BA - Global Business and Leadership (Continued), M.Sc (Software Engineering), B.Sc (Computer Science) Dr. K.Sudarsan (India) PhD, M.Com, MBA, BA Sandeep Aggarwal (India) MBA (Marketing & Finance), BBA Muqeem Ahmed (India) PhD (Computer Science), MCA, BSc Dr. Muhammad Reza Iravani (Iran) Ph.D. (Social work), M.A. (Sociology), B.A. (Social Sciences)

Advisory Body Ms. Rachna Ingle (India) PhD (Microbiology) (Cont.), B.Ed, MSc (Microbiology), BSc (Microbiology) Er. Rajesh Ojha, Muscat (Oman) Bachlor Of Engineering (Computer Science)

Reviewers Ms. Mamta Yadav (India) PhD (Cont.), MBA, BCom Dr. Asiamah Yeboah (Ghana) PhD (Marketing), Professional Postgraduate Diploma in Marketing, MBA-Marketing, Bachelor of Education (Social Studies). Dr. Alexander Ayogyam (Ghana) PhD (Marketing), M.A Industrial Management, B.sc (Mathematics) Mr. W.M.R.B.Weerasooriya (Sri-Lanka) PhD (Reading) (Management and Science University– MSU Malaysia), M.Com (University of Kelaniya), CCSD, MAAT, LICA, SP (RUSL), B.Sc (Business Management) Mr. MD. Zakir Hosen (Bangladesh) MBA & BBA (Accounting & Information Systems) Mr. Oteri Malack Omae (Kenya) PhD (cont.), MSc (Electrical Engineering), BSc (Electrical & Electronic Engineering) Dr. P.M.B. Jayathilake (Sri Lanka) PhD, M.Com, B.Sc (Business Management) Dr. Jaidev S. Tomar (India) PhD, Master of Industrial Relations & Personnel Management, M.A


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Microwave Response to Soil Moisture Content M. O. Oteri, D. B. O. Konditi, H. A. Ouma

5

Impacts of Global Financial Crisis on the Corporate Governance Practices in

Indian Banks: Implications and policy resolutions

Dr. K. K. Patra (India)

15

Using Knowledge Management for Organisational Learning Muhammad Usman (Islamabad)

24

A Survey of Security Approaches for Wireless Adhoc Networks Engr. Saad Masood Butt (Pakistan)

35

TABLE OF CONTENT


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Microwave Response to Soil Moisture Content

M. O. Oteri

Department of Electrical &

Electronic Engineering.

Faculty of Engineering.

Jomo Kenyatta University of

Agriculture & Technology

(JKUAT).

Nairobi (Kenya).

D. B. O. Konditi






(JKUAT).

Nairobi (Kenya).

H. A. Ouma






(JKUAT).

Nairobi (Kenya).

Abstract

The requirements of a constantly increasing population of the world have placed a critical

demand on water resources. To fulfill this ever increasing demand placed on water resources

by the population, it is imperative to utilize technologically advanced and efficient techniques

to explore and predict water availability in specific areas instead of random search. An

efficient approach for determining soil moisture content in this sense is to conduct microwave

remote sensing studies which can help in designing and developing active as well as passive

ground-based, airborne and satellite-borne sensors to monitor the situations regularly.

However, satellite systems are expensive.

In our method, we propose the use of a microwave system to determine soil moisture content.

The system uses a bistatic scatter method for measurement on the ground plane. The

technique can not only determine water or any liquid content but also buried metals.

Key words: - microwave response, remote sensing, bistatic scatter, soil moisture

1. Introduction The knowledge of soil moisture content is essential in agricultural and environmental

engineering as it controls plant growth, hydrological processes, and the contamination of

surface and subsurface water [1]. It has become evident that modeling detailed spatial

distributions of water and solutes in the heterogeneous subsurface requires extensive site

characterization. Characterizing this variability with conventional methods is invasive and

thus, time-consuming, costly and subject to a large degree of uncertainty due to the lack of

densely sampled in situ measurements [2].

Using microwaves in applications such as remote sensing, communication and radar system

modeling has been intensively developed over a long period of time and still continues to be a

very active research topic as presented by [1]-[6] as a sample. Research in soil moisture

remote sensing began shortly after the surge in satellite development, that is, in the mid 1970s

[7] and is continuously growing to date as can be noted in [8]-[11]. Among the implemented

techniques, free-space methods are well suited for industrial applications, such as civil

engineering (moisture content evaluation, change in the material composition with time) [12]

non-destructive testing [13] ground penetrating radar [14], agricultural materials and food

quality sensing (moisture content, maturity of fruit, freshness of eggs, potential insect control

in seeds and radio frequency heating) [15], bio fuel moisture measurement [16], microwave

breast cancer detection [5] and communication systems (modeling of radio wave propagation

channels) [3]. They can be first distinguished by their measurement domain, either time or

frequency, then by the type of the measured quantities, either scalar or vector valued, and also


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

by the experimental configuration using reflection and/or transmission at a fixed or variable

angle of incidence.

This paper presents a free space technique of measuring the reflectivity (related to

permittivity) of soil from which the soil moisture can be determined. The major advantages

of our method are its non-destructive characteristics, its suitability for use in broadband [17],

which increases resolution thus giving better results, and its averaging property due to the

large footprint illuminating the sample.

2. Soil characteristic parameters Materials interact with electromagnetic energy in different ways. In geologic applications, the

main materials encountered are soil, water, and air. The propagation of this electromagnetic

energy depends on the electrical properties of the ground, which are directly controlled by the

water content of the soil [1], [6]. Electromagnetic wave propagation in some cases can be

affected by the magnetic permeability of the soil, however for nonmagnetic materials the

magnetic permeability is equal to unity and the only factor that influences the speed,

attenuation and reflection of the electromagnetic wave is the dielectric constant of the soil.

For the range of frequencies used, the electrical conductivity of the material plays little role in

the transfer of electromagnetic energy. Instead the dielectric constant or relative permittivity

is used to describe the high frequency electrical properties of materials, because at these

frequencies the displacement (polarization) properties dominate the conductive properties for

many geologic materials [18]. Since the bulk soil electrical conductivity only plays a small

part in the propagation of electromagnetic waves under typical microwave frequencies and

minimal pore fluid salinity levels, the dielectric constant is taken into consideration.

2.1 Dielectric Constant

The dielectric constant (relative permittivity) of a material is a measure of its ability to store a

charge (electrical energy) for applied field strength [19]. A dielectric substance is nothing

more than a non-conductor of electricity or an insulator. If a parallel plate capacitor is

envisioned and an electromagnetic field is applied to the plates then the molecules in the

material between the plates (the dielectric) will polarize. This polarization creates a layer of

opposite charge on the surface of the dielectric, which in turn causes an increase in the

capacitance of the plates. The ease with which a substance polarizes under an electrical field

is what classifies substances as good or poor dielectrics. The easier materials polarize the

greater their dielectric constant. For example, pure water has a dielectric constant of 80 [9]

and air has a dielectric constant of 1 (See Table 1). Water will increase the capacitance of a

parallel plate capacitor by a factor of 80 over that of air. Dielectrics can be further explained

in terms of the creation of dipole moments under the application of an electric field.

Mathematically it is expressed by the following equation [20]:

ED (1)

Where D is the dipole moment density (F*V/m2), ε is the permittivity of the material in units

of Farads per meter (F/m), and E is the applied electric field in volts per meter (V/m). The

dielectric constant (εr) is given by the ratio of the material permittivity to the permittivity of

free space, εo = 8.854 x 10-12

(F/m) [21]:

or / (2)


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Because of the high dielectric constant of water it is expected that when it is added to soil, the

dielectric constant of that soil will change considerably (Table 1). This is confirmed by our

experiments.

Material Dielectric constant (εr)

Vacuum 1 (by definition)

Air 1.0005

Brick (dry) 2

Brick (wet) 5-10

Water (fresh) 80

Water (sea) 80

Soil (dry) 3-6

Soil (wet) 10-30

Paper 3

Polyethylene 2.25

Rubber 7

Barium titanate 1200

Plexiglass 2.6

Teflon 2.1

Table 1 Existing literature on dielectric constant for a few different materials [22]

3. MeasurementProcedure.

The principle of soil water content measurements with air launched surface reflections is

illustrated in Figure 2 (Schematic diagram) & Figure 3 (Experimental setup). The

transmitting and receiving antennas are operated at some distance above the ground by

mounting them on a given platform. The soil property being measured is the reflection

coefficient of the air-soil interface, , which is determined from the measured amplitude, Ar,

relative to the amplitude of a “perfect” reflector, Am, such as a metal plate larger than the

footprint of the antennas in use and is generally given by [21]:

m

r

A

A (3)

First the reflected voltage level is measured from metal reflector and a sample of dry soil is

put in a basin then the reflected signal level is also measured. The values are recorded after

which small amounts of water are added to the soil, at intervals, as the voltage level is

measured by the use of a spectrum analyzer. The reflection coefficient, soil permittivity and

the soil moisture content are then calculated. The results are shown in Table 2.

The soil permittivity can then be calculated using the following relation [21]:

1

1

soil

soil

(4)


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

This translates to:

2

1

1

m

r

m

r

soil

A

A

A

A

(5)

The εsoil obtained from surface reflectivity is a non-linear average of the permittivity variation

with depth.

The footprint of the antennas can be approximated by the diameter of the first Fresnel zone

(FZD) 5.0

2

24

hFZD (6)

Where λ is the wavelength (c/f for air) at the center frequency of the antennas and h is the

height of the antenna above the surface. The FZD criterion suggests a calibration footprint of

0.79 by 0.79 m for 1 GHz antennas operated 1.0 m above the soil surface and a footprint of

1.76 by 1.76 m for 225 MHz antennas operated at the same height.

From the obtained soil permittivity the soil moisture content can also be calculated using the

following empirical formula:

362422 103.4105.51092.2103.5 rrrv (7)

The general equation is given by, [17]

32

rrrv dcba (8)

A.

B. Where a, b, c and d are coefficients.

C. 4. Experimental Results and Discussion 4.1 Soil Moisture Content.

Taking measurements from a sample of dry soil that had different amounts of water added to it, the

following results were obtained.

Dry soil received voltage level = 0.31mV

Received voltage level for water =0.92mV

Received voltage level for perfect reflector (metal) = 1.15mV

Received Voltage

Amplitude (Ar) in mV

Reflection

Coefficient ()

Permittivity (r) Soil Moisture

Content (v)

0.31 (dry soil) 0.270 3.05 0.0000

0.55 0.478 8.025 0.1481


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Table 2 Measured voltage levels for wet soil, calculated reflection coefficient, permittivity

and volumetric soil moisture content at 2 GHz.

Table 2 shows a sample of data acquired with the 2 GHz surface reflection measurement set

up shown in Figure 2. Different amount of water is added to the soil as the voltage level is

measured. Generally, the soil water content obtained with this technique is similar to the soil

water content obtained by Yang and Ulaby [9] and the theoretical values obtained by Topp Et

Al [22] as shown in the plots in Figure 6. However, there seems to be some variation from the

start of the plots and also considerable difference in reflectivity against soil moisture content

even though the gradient seems to be the same as can be seen from Figure 7. This is probably

brought about by, the impact of the soil water content profile with depth on the reflection

coefficient, the impact of surface roughness on the reflection coefficient and reliability and

accuracy of amplitude measurements.

The determination of soil water content from the reflection coefficient requires accurate

amplitude measurements. Surface roughness and varying soil water content profiles with

depth will both cause significant scattering, which leads to a decrease in reflection coefficient

and an underestimation of soil water content if not accounted for. The effective measurement

depth and the impact of soil water content variations with depth are topics of active research,

but little is known at the moment.

4.2 Effect of Vegetation

When different numbers of leaves were added to the surface of the soil and then the

amplitude of the reflected signal level measured, it was found that the reflected signal

reduced with increase of number of leaves. The results are shown in Table 3. This shows that

leaves have an effect on the reflected signal. This is attributed by the fact that leaves absorb

and scatter incident microwave signals. This phenomenon can be used to show that

vegetation cover has an effect on the radio wave signals in the ultra high frequency (UHF)

band, which will be absorbed and scattered thus not reaching the intended recipient as

required.

Number of leaves Reflected signal level (Ar) in mV

0 0.31

1 0.26

2 0.22

3 0.18

4 0.17

5 1.16

6 0.13

Table 3 Reflected signal level for different number of leaves at 2GHz.

0.60 0.522 10.138 0.1910

0.69 0.600 16.000 0.2910

0.72 0.626 18.910 0.3316

0.79 0.687 29.042 0.4365


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

4.3 Effect of surface roughness

The sample of dry soil above was used to determine the effect of soil surface roughness on

the incident microwave signal. Different levels of depressions were made onto the soil

sample while the reflected signal level was measured. It was found that as the level of

depressions was increased the reflected signal measured reduced as presented in Table 4

below. This is as a result of the microwave signal being scattered in different directions as

opposed to when the surface is smooth where the signal is reflected almost in one direction.

Depression height (cm) Reflected signal level (mV)

0.5 0.25

1 0.22

1.5 0.18

2 0.15

2.5 0.12

3 0.10

Table 4 Measured reflected signal in relation to the surface roughness height at 2 GHz.

4.4 Effect of depth

For this experiment a metal plate used as a reflector was buried at different depths below the

soil surface while the reflected signal level was measured. From the results in Table 5 it was

noted that as the depth was increased for the buried metal plate the measured signal level

reduced up to a depth of around 6cm where the signal was equivalent to the one reflected by

dry soil. This shows that the transmitter generates a signal, which can penetrate up to a depth

of around 5cm. Therefore it can be concluded that the soil moisture content measured was up

to a depth of around 5cm at 2 GHz.

Depth (cm) Reflected signal level (mV)

0 1.12

1 0.82

2 0.53

3 0.41

4 0.38

5 0.36

6 0.36

Table 5 Measured reflected signal with increase in depth of buried metal at 2 GHz.

5. Summary and Conclusions This technique has advantages over more traditional methods of measuring field soil moisture

content. It is non-intrusive, has no effect on water flow pattern (soil disturbance methods may

effect water flow paths) and potentially has a larger sample volume than other methods.

When an EM wave propagates through the soil from the transmitting antenna, the wave could

be reflected, scattered or attenuated due to the different electrical properties in the

underground materials. The depth of EM wave penetration is determined by the conductivity

of the material as well as the wave frequency. This technique is potentially useful in a wide


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

variety of applications for rapid and nondestructive in situ sub-surface investigations. In

particular, this technique is useful in shallow soil investigations depending on the

conductivity of the media. However for our antenna the measurement of soil moisture content

was approximated to be up to around 5cm depth. As from the experiments it can be shown

that this method can be used to measure the effect of different parameters like soil surface

roughness and vegetation on microwave signal besides soil moisture content determination.

Clearly, the impact of surface roughness and soil water content profiles on the surface

reflection coefficient are two key issues that need to be addressed when applying this

technique as can be seen from our results. It is interesting to note that these problems are

similar to those in remote sensing and it is possible that this soil water content measurement

technique can profit from developments in the highly sponsored field of remote sensing.

If the system is to be used in the field it requires that we have simple and portable equipment

like a signal generator and electric field intensity measuring device. A more convenient,

reliable and accurate equipment could be a radar which can take measurements that can be

analyzed using a computer. We feel that this method could provide more advantages in soil

moisture measurement and communication to control a sprinkler than the one given in [3]

since it is non-intrusive.

Possible Sources of Error

The following sources were identified during this investigation:

1. Uncontrolled testing environment due to lack of anechoic chamber

2. Noise generated by automobiles caused fluctuations in readings.

3. The movement and positioning of the coaxial cable altered amplitude levels.

4. Lack of precision tools for Antenna design and fabrication.

Soil sample.

Figure 2 Schematic Diagram of Bistatic Scatterometer System

Transmit

antenna

Receive antenna

Microwave

source Receiver unit

Incident signal Reflected signal

Cable Cable


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Metal Reflector Bow tie Antennas

Soil Sample Coaxial Cable Spectrum Analyzer

Figure 3 Experimental setup

Figure 6 Comparison of our results with Yang & Ulaby and Topp Et Al theoretical results

for permittivity against volumetric soil moisture.


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Figure 7 Comparisons of our results with Yang & Ulaby for reflectivity against volumetric

soil moisture content

6. Future Work.

Outdoor experiments will be conducted at different sites to establish the practical validity of

our method in detecting objects below the ground surface. Further work also lies in designing

antennas at lower frequencies than 2 GHz antenna that can be used to detect objects buried

beyond 5cm under the earth„s surface.

References 1. Jiancheng Shi, Lingmei Jiang, Lixin Zhang, Kun-Shan Chen, Jean-Pierre Wigneron,

and André Chanzy “A Parameterized Multifrequency-Polarization Surface Emission

Model” IEEE Transactions on Geoscience and Remote Sensing, Vol. 43, No. 12, pp.

2831-2841, December 2005.

2. Sebastien Lambot, Idesbald van den Bosch and Evert C. Slob, “Frequency Domain

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Properties” EARSeL eProceedings 3, pp. 398-404, March 2004.

3. Pichitpong Soontornpipit, Cynthia M. Furse, You Chung Chung, and Bryan M. Lin,

“Optimization of a Buried Microstrip Antenna for Simultaneous Communication and

Sensing of Soil Moisture” IEEE Transactions on Antennas and Propagation, Vol. 54,

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4. Steven W. Ellingson and Joel T. Johnson “A Polarimetric Survey of Radio-Frequency

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No. 8, pp. 2374-2380, August 2005.


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6. Wu Taixia and Zhao Yunsheng, “The Bidirectional Polarized Reflectance Model of

Soil” IEEE Transactions on Geoscience and Remote Sensing, Vol. 43, No. 12, pp.

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Teferi D. Tsegaye, “Ground-Based Passive Microwave Remote Sensing Observations

of Soil Moisture at S-band and L-band With Insight into Measurement Accuracy”

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of the Complex Permittivity of Materials Using Reflection Ellipsometry in the

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measurement, vol. 54, no. 3, June 2005.

12. John J. Bowders, “Nondestructive Evaluation Methods” RMK Symposium, Drexel

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Monostatic Pulse Radar” IEEE Transactions on Geoscience and Remote Sensing, Vol.

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thesis, August 2002.


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Impacts of Global Financial Crisis on the Corporate

Governance Practices in Indian Banks: Implications

and policy resolutions

Dr. K. K. Patra (India)

Professor of Finance and Dean (Administration)

Rourkela Institute of Management Studies

Institutional Area, Gopabandhu Nagar

Chhend, Rourkela- (Orissa)

FDPM-IIMA, PhD, PGDM, PGDFM, MBA, LL.B, M.Com

Abstract

The present paper deals with various issues of corporate governance relating to its concept

and describes various committee issues of corporate governance in the Indian economy and

relates it with Indian banking systems. We are passing through a turbulent phase in the

global economy, the spill-off of which is being witnessed in India as well, while Indian can

never be fully insulated from global happenings. The economic crisis, which originated in

the financial sector of the United States, is being transmitted to the countries around the

world. Corporate Governance as practiced in India has as its primary goal i.e., optimization

of the performance of corporate entities within the limitations placed on the corporate work

environment by the intensity of investor aspirations on one hand and the compulsions of

public interest and situational constraints on the other. Banking is clearly a special sub-set of

corporate governance with much of its management obligations enshrined in law or

regulatory codes. Indian banking sector plays a catalytic role because of the critical nature of

the relationship with business or corporate sector and large public ownership. This paper

develops a model of the causes and consequences of corporate governance practices in Indian

banks.

Key words: Corporate governance, jeopardizing, aspirations, turbulent, adherence.

Introduction:

“The crisis has caused a massive breakdown of trust in the financial system, bankers,

business, business leaders, investment advisers, credit rating agencies, politicians, media and

in the process of globalisation.”

Duvvuri Subba Rao

Governor, Reserve Bank of India

Globalization has been one of the major events in the world economy in the last two decades.

It compressed the world, intensified the consciousness of the world as a whole and deepened

the worldwide social relations which link distinct localities in such a way that local

happenings are shaped by events occurring many miles away and vice versa. During the past

two decades the business cycles in the large emerging Asian economies and in the developed

economies have been quite different. Many transnational companies use emerging markets as

a part of their production chains and this is especially true for the Asian economies. China

and India played only a marginal role in the world economy before the 1990s. Whereas China


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

was a predominantly agrarian economy before 1980. More recently, India has joined this

pattern of economic development.

Banking and financial crises have been a common phenomenon throughout the modern

economic history of mankind. Although the global financial crisis have not spared India,

Indian banks still appear to be unaffected by the slowdown. Globalization and liberalization,

undoubtedly, brought benefits of advancement, but globalization and liberalization, especially

in the financial sector, were also responsible for increasing instability. The international

financial crisis that erupted in the US has started spreading ripples of troubles worldwide.

The world saw the abject failure of the US Government to find a solution. The solution must

be consistent with justice and social solidarity for all countries, reflect an understanding of

the necessary balance between Government and markets, more global cooperation in setting

macroeconomic policies, rebuilding trust in the financial markets and respect the principles of

democratic due process, including full transparency. Globalisation will not only significantly

heighten business risks, but will also compel Indian companies to adopt international norms

of transparency and good governance. The real factor behind the financial crisis is the macro-

economic profligacy rather than imprudence or inefficiency at the micro-financial level

(Agarwala,2008). Equally, in the resultant competitive context, freedom of executive

management and its ability to respond to the dynamics of a fast changing business

environment will be the new success factors. Corporate Governance as a working tool for

improving the overall effectiveness of corporate enterprises has found wide acceptability in

the corporate world in India.

The impact of global financial crisis on India can broadly be divided into three

different aspects:

i) The immediate direct impact on its financial sector;

ii) An indirect impact on economic activities, and

iii) Potential long term geopolitical implications.

The intensification of the global financial crisis, following the bankruptcy of Lehman

Brothers in September 2008, has made the current economic and financial environment a

very difficult time for the world economy, the global financial system and for central banks.

The fall out of the current global financial crisis could be an epoch changing one for central

banks and financial regulatory systems. Since the great depression of 1929, the world has

witnessed hundreds of such crises and the frequency of the crises has increased over time.

According to a World Bank study of 2001, there were as many as 112 systemic banking

crises from the late 1970s until 2001. Most of them, including the current one, have shared

some common features: they each started with a hasty process of financial sector reforms,

which not only created a vacuum in terms of regulations but also deteriorated the basic

economic fundamentals though massive inflows of foreign capital and finally ended up with a

change in investor expectations and a consequent mess in the financial markets. The financial

sector crisis that arose in the latter half of 2007 and was precipitated by the collapse of

Lehman Brothers on 23 September 2008 shared most –if not all– of these features. India,

being an integrated part of the global economic order, was also exposed to the adverse impact

of the global economic crisis. The crisis is global actions are national; benefits could be

universal, but burdens in future on their account have to be incurred at national level exit is

essential as the risks to growth abate and inflation risks emerge and intensify. The timing of

exist is critical since premature exist may derail recovery and growth while a delayed exist

may feed inflation and threaten growth over the medium term (Reddy, 2009).


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Definition:

“Corporate Governance is the system by which orgaisations are directed and

controlled. The Corporate Governance structure specifies the distribution of rights and

responsibilities among different participants in the corporation, such as board, managers,

shareholders and other stakeholders, and spells out the rules and procedures for making

decisions on corporate affairs. By doing this, it also provides the structure through which the

company objectives are set and the means of attaining those objectives and monitoring

performance.”

Organisastion for Economic Co-operation and Development (OECD), April 1999

Concept of financial crisis:

If there is one major lesson to draw from the financial crisis, it is that corporate governance

matters. The financial crisis has revealed severe shortcomings in corporate governance. When

most needed, they often failed to provide the checks and balances that companies need in

order to cultivate sound business practices. The financial crisis in emerging markets, lack of

monitoring controls within corporate, governmental oversight in tracking misappropriation of

funds, combined with financial failures among the firms have brought the topic of corporate

governance for academia to acceptance in industry and capital markets. The various causes of

global financial crisis are:

Proximate causes

Sub-prime lending

Originate and distribute model

Financial engineering, derivatives

Credit rating agencies

Lax regulation

Large global imbalances

Fundamental cause

Excessively accommodative monetary policy in the US and other advanced

economies (2002-04)

Global Financial Crisis

Current Account Balance (per cent to GDP)

COUNTRY 1990-94 1995-99 2000-04 2005 2006 2007 2008

China 1.4 1.9 2.4 7.2 9.5 11.0 10.0

India -1.3 -1.3 0.5 -1.3 -1.1 -1.0 -2.8

Russia 0.9 3.5 11.2 11.0 9.5 5.9 6.1

Saudi Arabia -11.7 -2.4 10.6 28.7 27.9 25.1 28.9

United Arab

Emirates 8.3 4.6 9.9 18.0 22.6 16.1 15.8

United States -1.0 -2.1 -4.5 -5.9 -6.0 -5.3 -4.7

Memo:

Euro area n.a. 0.9 0.4 0.4 0.3 0.2 -0.7

Middle East -5.1 1.0 8.4 19.7 21.0 18.2 18.8

Source: World Economic Outlook Database, April 2009, International Monetary Fund.

Note: (-) indicates deficit.


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Impact of the global crisis on India:

The impact of the global crisis on India can broadly be divided into three different aspects:

(1) the immediate direct impact on its financial sector; (2) an indirect impact on economic

activities; and (3) potential long-term geopolitical implications. Fortunately, India, like most

of the emerging economies, was lucky to avoid the first round of adverse affects because its

banks were not overly exposed to subprime lending. Only one of the larger private sector

banks, the ICICI, was partly exposed but it managed to counter the crisis through a strong

balance sheet and timely government action. The banking sector as whole maintained a

healthy balance sheet and, over the third quarter of 2008 –a nightmare for many big financial

institutions around the world–, India‟s banks reported encouraging results and witnessed an

impressive jump in their profitability (Vashisht & Pathak, 2009). The direct effect of the

global financial crisis on the Indian banking and financial system was almost negligible,

thanks to the limited exposure to riskier assets and derivatives. The relatively low presence of

foreign banks also minimised the impact on the domestic economy. However, the crisis did

have knock on effects on the country, broadly, in three ways. First, the reduction in foreign

equity flows – especially FII flows – impacted the capital and forex markets and the

availability of funds from these markets to domestic businesses; second, the shrinking of

credit markets overseas had the impact of tightening access to overseas lines of credit

including trade credit for banks and corporate. Both these factors led to pressure on credit and

liquidity in the domestic markets with the knock on effects, and third, the fall in global trade

and output had impact on consumption and investment demand. The cumulative impact of all

this was a slowing down of output and employment. Despite the slowing down, India is still

the second fastest growing economy in the world. India with its complexities and sizeable

market is a great preparation ground for companies to hone their skills and learn to deal with

a culturally diverse populace. Being intensely competitive and price sensitive at the same

time, the market forces companies to develop innovative mechanisms that result in lean cost

structures. (Singh, 2008).

Impact of us financial crisis on Indian outsourcing companies:

Almost 60% of the total business of Indian IT and outsourcing industry comes from the US

and the UK and therefore any tumults in those economies reflect with proportional ripples.

An industrial production declines, unemployment rates have shot up in the United States. It

has continued to affect the Indian industries as well. The IT outsourcing boom has created a

buzz in the Indian economy. Jobs were created, unemployment rates declined, IT salary

increased along with cost of living, real estate prices soared and so on. Indian outsourcing

industry was making a progressive advance towards more quality oriented business

operations and climbing up the value chain. The BPO sector was making a shift in terms of

value addition towards KPO. The slowdown in US economy is making it necessary for Indian

companies to look for business opportunities outside US in countries of Asia Pacific, Europe,

Africa and Middle East. The economic conditions have led many investment banks to

convert themselves into commercial ones. Due to the global economic slowdown, US

companies will reduce IT outsourcing. As a result of reduced business, Indian outsourcing

companies may take to reducing the number of employees in order to balance the low

demand figures.


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Concept of corporate governance:

“Corporate governance is the enhancement of corporate performance through

supervision, monitoring of management performance and ensuring the accountability of

management to shareholders and stakeholders.

Teh Kok Peng, President, GIC Special Investments, Singapore

(Comment made at ACGA’s first annual conference, Hong Kong, Nov. 1, 2001)

Financial crisis and its impact on Indian companies:

Globalisation and India becoming the world bestseller have driven many a company on to the

corporate governance path. Indian companies are seeking to raise capital from foreign shores.

The current economic crisis, which originated in the financial sector of the United States, is

being transmitted to the countries around the world through three principal channels. First it

has directly impacted the balance sheets of financial institutions that invested in the

mortgage-backed securities and their derivatives, which turned toxic following large scale

defaults in the US housing market. Secondly, the crisis has created a liquidity crunch. The

US firms seeking liquid resources massively withdrew their investments in stocks and bonds

in other countries. Thirdly, the final source of transmission of the crisis has been the real

sector now frequently referred to as the „Main Street‟ in the United States. The financial

crisis coincided with the creeping recession in the United States and made it worse.

The direct effect of the global financial crisis on the Indian banking and financial system was

almost negligible, thanks to the limited exposure to riskier assets and derivatives. The

relatively low presence of foreign banks also minimised the impact on the domestic economy.

However, the crisis did have knock on effects on the country, broadly, in three ways. First,

the reduction in foreign equity flows – especially FII flows – impacted the capital and forex

markets and the availability of funds from these markets to domestic businesses; second, the

shrinking of credit markets overseas had the impact of tightening access to overseas lines of

credit including trade credit for banks and corporate. Both these factors led to pressure on

credit and liquidity in the domestic markets with the knock on effects, and third, the fall in

global trade and output had impact on consumption and investment demand. The cumulative

impact of all this was a slowing down of output and employment. Despite the slowing down,

India is still the second fastest growing economy in the world (Thorat,2009).

Managers are generating large cash flows but have limited opportunities for value creating

(positive NPV) investment projects, tend to destroy share owner wealth by investing too

much capital back into their existing business and/or making ill-conceived and over-priced

acquisition forays into unrelated areas. The managers tend to „fix‟ the game for their own

benefit rather than think of the long-term interest of the shareowners. Many private sector


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organizations around the world have found the implementation of the EVA framework a far

more effective internally driven initiative to improve governance as compared to compliance

mechanisms or transaction driven alternatives. It has to be remembered that key elements of

good corporate governance principles include Honesty, Trust, Integrity, Openness,

Performance Orientation, And Responsibility Along With Accountability, Mutual Respect,

And Commitment To The Organization. Most important thing is to recognize the fact that

corporate governance has succeeded in attracting a good deal of public interest because of its

apparent importance for the economic health of corporations and society in general. After

clocking an average of 9.4 per cent during three successive years from 2005-06 to 2007-08,

the growth rate of real GDP slowed down to 6.7 per cent (revised estimates) in 2008-09.

Industrial production grew by 2.6 per cent as compared to 7.4 per cent in the previous year. In

the half year ended March 2009, imports fell by 12.2 per cent and exports fell by 20.0 per

cent. The trade deficit widened from $88.5 billion in 2007-08 to $119.1 billion in 2008-09.

Current account deficit increased from $17.0 billion in 2007-08 to $29.8 billion in 2008-09.

Net capital inflows at US$ 9.1 billion (0.8 per cent of GDP) were much lower in 2008-09 as

compared with US$ 108.0 billion (9.2 per cent of GDP) during the previous year mainly due

to net outflows under portfolio investment, banking capital and short-term trade credit. As per

the estimate made by the RBI in its Annual Policy announced on April 21, 2009, GDP is

expected to grow by 6 per cent in 2009-10 (Thorat,2009).

Corporate Governance vs. Kumarmangalam Birla report:

The objective of the committee was "enhancement of the long-term shareholders‟ value while

at the same time protecting the interests of other stakeholders." The key recommendations of

the report were:

1. Board of Directors:

It provides leadership, strategic guidance and objective judgment independent of

management to the company and exercises control over the company, while remaining at all

times accountable to the shareholders. The Board has five basic responsibilities:

Overseeing Strategic Development and Planning

Management Selection, Supervision and Upgrading.

Maintenance of Good Member Relations

Protecting and optimizing the Organizations‟ Assets.

Fulfilling Legal Requirements.

Attendance of each director at the BoD meetings and the last AGM.

Number of BoD meetings held, dates on which held.

2. Audit Committee:

Brief description of terms of reference

Composition, name of members and Chairperson

Meetings and attendance during the year

3. Remuneration Committee:

Brief description of terms of reference

Composition, name of members and Chairperson

Attendance during the year

Remuneration policy

Details of remuneration to all the directors, as per format in main report.


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4. Shareholders Committee:

Name of non-executive director heading the committee

Name and designation of compliance officer

Number of shareholders complaints received so far

Number not solved to the satisfaction of shareholders

Number of pending share transfers

5. General Body meetings:

Location and time, where last three AGMs held.

Whether special resolutions

Were put through postal ballot last year, details of voting pattern

Person who conducted the postal ballot exercise

Are proposed to be conducted through postal ballot

Procedure for postal ballot

6. Disclosures:

Disclosures on materially significant related party transactions i.e. transactions of

the company of material nature, with its promoters, the directors or the

management, their subsidiaries or relatives etc. that may have potential conflict

with the interests of company at large.

Details of non-compliance by the company, penalties, strictures imposed on the

company by Stock Exchange or SEBI or any statutory authority, on any matter

related to capital markets, during the last three years.

7. Means of communication:

Half-yearly report sent to each household of shareholders.

Quarterly results

Which newspapers normally published in.

Any website, where displayed

Whether it also displays official news releases; and

The presentations made to institutional investors or to the analysts.

Whether MD&A is a part of annual report or not.

8. General Shareholder information:

AGM: Date, time and venue

Financial Calendar

Date of Book closure

Dividend Payment Date

Listing on Stock Exchanges

Stock Code

Market Price Data : High., Low during each month in last financial year

Performance in comparison to broad-based indices such as BSE Sensex, CRISIL.

Registrar and Transfer Agents

Share Transfer System

Distribution of shareholding

Dematerialization of shares and liquidity

Outstanding GDRs/ADRs/Warrants or any Convertible instruments.

Plant Locations

Address for correspondence


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Future outlooks of Indian banks for better poised to cope with global

financial crisis:

Indian banking industry is better placed to cope with the current adverse consequences of the

ongoing financial turmoil in the West. Our banking industry is subject to stricter prudential

regulations with respect to capital and liquidity. The Central Bank of the country i.e.,

Reserve Bank of India has imposed prudential limits on bank‟s purchased inter-bank

liabilities and these limits are linked to their net worth. In order to strengthen capital

requirements, the credit conversions factors, risk weights and provisioning requirements of

specific off-balance sheet items, including derivatives have been reviewed in the last few

years. Moreover, in India, complex structures like synthetic securitization have not been

permitted so far. Reiterating that India‟s banking industry was quite healthy and as much as

34% of its deposits are in government securities and cash with the RBI. Their consumer loan

to GDP ratio is just 10%, where as this ratio is as high as 100% for the US. The banking

sector, through its overseas branches, has some exposure to distressed financial instruments,

and troubled financial institutions. But this exposure is part of the normal course of their

business and is quite small relative to the size of their overall business. Indian markets are

witnessing today is an indirect, knock-on effect of the global financial situation. This is only

a reflection of the uncertainty and anxiety in the global financial markets.

Corporate Governance Model:

Corporate governance mechanisms differ as between countries. The governance mechanism

of each country is shaped by its political, economic and social history as also by its legal

framework. Despite the differences in shareholder philosophies across countries, good

governance mechanisms need to be encouraged among all corporate and non-corporate

entities. Following figure indicating the rating scores for 4P‟s of corporate governance:

PURPOSE -25%

Vision-10%, Strategy-15%

PEOPLE--25%

Equity-10%, Relations-7%,

Ethics-8%

PERFORMANCE-25%

Efficiency-10%, Growth-15%

PROCESS -25%

Management-15%, Compliance-5%,

Innovation-5%

4 P’s of Corporate

Governance


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Conclusion:

The global financial crisis has forced banks to take a critical look at how they manage risk

and has exposed some significant weaknesses in risk management across the financial

services industry. Good corporate governance is a journey and not a destination. It is a

rewarding journey for those who choose the right path. Effectiveness of corporate governance

system cannot merely be legislated by law neither can any system of corporate governance be

static. As competition increases, technology pronounces the death of distance and speeds up

communication; the environment in which firms operate in India also changes. India‟s

geopolitical location is such that the financial crisis presents it with many challenges as well

as opportunities. India will be able to tackle the challenges and make the most opportunities

is impossible to predict at present. The financial crisis has forced banks to take a critical look

at how they manage their risk and has exposed some significant weaknesses in the risk

management across the financial services industry. As the Indian corporate scene is

gradually transforming to cope with globalization, liberalization and privatisation,

stakeholders are getting restless to prevent corporate board from offering them inferior deals.

In the recent years, the regulators and legislators have intensified their focus on how

businesses are being run. Effectiveness of corporate governance system cannot merely be

legislated by law neither can any system of corporate governance be static. As competition

increases, the environment in which firms operate also changes and in such a dynamic

environment the systems of corporate governance also need to evolve. Failure to implement

good governance procedures has a cost in terms of a significant risk premium when

competing for scarce capital in today's public markets.

Bibliography

1. Agarwala, Ramgopal (2008): How can Asia help the US economy, The Economic

Times, March 24, p. 15.

2. Rangarajan, C (2000): Corporate Governance-Some Issues, Indian Management, Vol.

39, No 2., February, pp. 18-21.

3. Reddy, Y.R.K & Raju Yerram (2001): Corporate Governance in Banking & Finance,

Tata McGraw Hill Publishing Company Ltd., New Delhi.

4. Reddy, Y.V.(2009): Global Financial Crisis: The way ahead, The Economic Times,

October 2, p.10.

5. Singh, Devi & Garg, Subhash (2002): Corporate Governance, Excel Books, New

Delhi.

6. Singh, Devi (2002): Desirable Corporate Governance in India-A Model, Corporate

Governance, Excel Books, New Delhi, pp. 243-252.

7. Singh, Malvinder Mohan (2008): Globalisation, the unstoppable wave, The Economic

Times, January 8, p.13.

8. Thorat, Usha (2009): Impact of global financial crisis on Reserve Bank of India (RBI)

as a national regulator, 56th EXCOM Meeting and FinPower CEO Forum organised

by APRACA, Seoul, 29 June.

9. Vashisht, Pankaj and Pathak, Sriparna (2009): The Global Economic Crisis and India:

An Analysis, International Economy & Trade/Asia-Pacific ARI 129/2009, 9th

October.

10. Vittal. N & Mahalingam, S (2001): Public Sector Governance & Management-

Emerging Dimensions, Vikas Publishing House Pvt. Ltd., New Delhi.


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Using Knowledge Management for Organisational

Learning Muhammad Usman (Islamabad)

Doctorate BA - Global Business and Leadership (Continued),

M.Sc (Software Engineering),

B.Sc (Computer Science)

Abstract

Knowledge management (KM) or knowledge intercourse in organizations is based on

knowing of knowledge beginning and knowledge channel. In implementation, KM is a

methodology to benefit from the knowledge that resides in a disposal by using it to win the

organization's assignment. The dealing of tacit or underlying knowledge to unambiguous and

convenient formats, the goal of many KM projects, is challenging and dowered with current

direction issues. This article discovers the various types of contexts staleness is based on

inclination the incentive nature of knowledge itself. The article critiques some prevalent

research in the KM literature and concludes with a perspective towards knowledge

management programs improved around knowledge.

Keywords: Knowledge Management, Information management, knowledge methodologies

I. Introduction

Knowledge management is not a new concept. Knowledge is considered as a strategic tool to

make quality decisions on the basis of available information and data. Knowledge

management is a term applied to any initiative involving people, processes and technology

that leverages the knowledge within an organisation to achieve its objectives. Introducing and

expanding the knowledge base within an organisation is not as easy as it is with the

information base as knowledge is an intangible asset which cannot be easily understood,

classified, shared and measured.

1.1 Defining Knowledge Management

There is no universal definition of knowledge management, just as there is no agreement as to

what constitutes knowledge. Knowledge management involves blending the information

available in organisation‟s processes and turning it into actionable knowledge via a

technology platform (DiMattia and Order, 1997). Knowledge management comprises a range

of strategies and practices used in an organisation to identify, create, represent, distribute and

enable insights and experiences. Such insights and experiences comprise knowledge, either

embodied in individuals or embedded in organisational processes or practices. According to

McInerney and LeFevre (2000), kknowledge management is an effort to increase useful

knowledge within the organisation. Ways to do this include encouraging communication,

offering learning opportunities to employees and promoting the sharing of appropriate

knowledge artefacts within an organisation.

The contributory fields of knowledge management encompass business administration,

information systems, management, media, computer science, public health and public policy


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(Alavi and Leidner, 1999). The different perspectives of knowledge management are:

1. Knowledge management relates to systems and technologies.

2. Knowledge management is about organizational learning.

3. Knowledge management consists of processes, methods and techniques used within

an organization.

4. Knowledge management means creating and managing knowledge assets and hence

servers as a foundation for acquiring intellectual capital.

5. Knowledge management is a holistic initiative across the entire organization to

achieve excellence in all its working areas.

According to Haeckel and Nolan (1993), an organisation's complexity is based upon the

number of information sources it has, the business elements it coordinates and the types of

relationships to bind these elements. An organisation's intelligence quotient is determined by

three critical attributes: connecting - ability to access knowledge and information; sharing -

ability to integrate and share information; structuring - ability to extract meanings from the

available data.

1.2 Constituents of Knowledge Management

Knowledge management may be viewed in terms of people, processes or structures, culture

and technology where people refers to the individuals in the organisation who can influence

others with their knowledge; processes pertain to approaches which vary from organisation to

organisation; structure attributes to the business processes and organisational structures that

facilitate knowledge sharing; culture relates to creating conducive atmosphere and

environment within the organisation which facilitate the individuals to participate and take

initiatives in managing the available knowledge; and technology corresponds to the means

chosen to store the extracted knowledge.

Skyrme and Amidon (1997) observe that employees of an organization often stuck up in

executing specific tasks for which the required knowledge already exists somewhere within

the organization but is not known to them. In such a scenario, there is a need to establish an

intranet within the organization and creating a database that contains best practices for

various tasks performed by the organization. Whenever, an organization formulates a new

model to handle a specific task, the methodology for that model should be updated into the

knowledge database of the organization. The organizations who seek to acquire new

techniques and procedures to perform their work more effectively need to create conducive

environment where the culture of learning can flourish. Knowledge management activities

that the organization can opt to acquire are listed in Table 1.

Table 1: Knowledge Management Activities.

S/N Activity Action/Methodology

1 Knowledge Databases Store best practices, expert directories,

knowledge warehousing.

2 Information Management

and Knowledge Webs

Information gathering, filtering,

classification and storing. Collaborating

across and beyond an organisation‟s


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functional and geographic boundaries e.g.,

yellow pages.

3 Incorporation of knowledge

into organisational processes

Developing Document Management System

by establishing intranet or web portal.

4 Knowledge Centers Creation of focal points for facilitating flow

of knowledge (knowledge accessibility).

5 Introduction of collaborative Establishing intranets and multi-disciplinary

cross-functional

Knowledge is intangible, dynamic and difficult to measure, but without it no organization can

survive. The move from an industrially-based economy to knowledge-based or information-

based economy in the 21st century entails capacity for learning and a top-notch knowledge

management system to attain competitive edge.

1.3 Types of Knowledge

Knowledge is generally classified into three main categories; Tacit Knowledge, Explicit

Knowledge and Background Knowledge.

1.3.1 Tacit Knowledge

Tacit or unarticulated knowledge means the knowledge that the employees of an organisation

acquire or develop during the execution of their tasks. Tacit knowledge can be in the form of

hands-on skills, special know-how, experience, native talent, heuristics and intuitions and in

fact is the personal knowledge that is hard to formalise or articulate. This form of knowledge

often has a creative robustness and is deeply rooted in actions exercised by the employees

during the dispensing of their procedural or routine work. The transfer of tacit knowledge is

quite complex as it is linked with the will of the employees to share their experiences with

their colleagues. Tacit knowledge in an organisation ensures task effectiveness i.e., the right

things are being carried out and all the constituent units of an organisation are focused

towards attaining their objectives and collectively contributing towards achieving the mission

of the organisation as a whole. Tacit knowledge is bit difficult to communicate or share with

others and generally lies in the heads of individuals and groups.

1.3.2 Explicit knowledge

Explicit knowledge, also known as rule-based knowledge, is used to match different kinds of

measures to be taken in different situations by invoking appropriate rules. Explicit knowledge

is normally available in the form of rules/regulations, standard operating procedures and

templates. It is used for standardising organisational processes to enhance operational

efficiency. Further, explicit knowledge consists of skills and facts that can easily be written

down and can be taught to others.

1.3.3 Background knowledge

Background knowledge relates to the organisational culture and is communicated through

oral and verbal texts such as stories, metaphors, analogies, visions and mission statements.

Background knowledge exhibits the organisational working procedure by which employees

of an organisation understand particular events, actions or situations in a distinctive ways

(Morgan 1986). Background knowledge draws the cognitive context and endows meaning

with particular reference to the organisation's tasks.


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All of the above mentioned forms of knowledge can be found in any public or private sector

organisation. The progressive organisations continuously keep on expanding, renewing and

refreshing their knowledge in all the three categories of knowledge. Such organisations

promote the learning of tacit knowledge to increase the skill and creative capacity of their

employees, benefit from explicit knowledge to maximise their efficiency and develops

background knowledge to consolidate distinctive objectives from their counterpart

organisations. Table 2 shows a comparative analysis of these three forms of knowledge.

Table 2: Types of Organisational Knowledge.

Type Form Examples Uses

Tacit

Knowledge Procedural

Know-how

Heuristics

Intuitions

Ensures task

effectiveness

Explicit

Knowledge Declarative

Encoded in

Working

Procedures

Routines

SOPs

Templates

Promotes operational

efficiency and control

Background

Knowledge Contextual

Expressed in

Texts

Vision

Scenarios

Metaphors

Mindsets

Instills commitment

through shared meaning

1.4 Knowledge Management Efforts

Knowledge management efforts are typically focused towards achieving organisational

mission and objectives. The key advantages gained through effective knowledge management

comprise: improved performance, competitive advantage, innovation and sharing the lessons

learned that contribute towards a continuous improvement of the processes and procedures of

an organisation. The organisational efforts to acquire knowledge may be distinguished greatly

by focusing on the management of knowledge as a strategic asset and attaching a greater

emphasis on sharing of knowledge to capacitate employees for larger organisational benefits.

This two pronged effort brings about a revolutionary change in the organisational behaviour

as individuals and groups share valuable organisational insights which ultimately results in

reduction of redundant work, avoids reinventing the wheel per se, curtails the training time

for new employees and builds the intellectual capital within the organisation.

1.5 Information vs Knowledge

A review of the basic definitions of information management and knowledge management is

quite helpful in comprehending differences between them. The key difference between

information and knowledge is:

Data means attributes, events, transactions or metadata. Information attributes to

organizing data in such a way that it conveys certain meaning.


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Knowledge is transformation or organizing data and information in an experienced

way so that it can be made reusable. Knowledge serves as a basis to make decision

based on the available information and facts.

1.6 Information Management vs Knowledge Management

The definitions of information management tend to be far more uniform and less complex

than the definitions of knowledge management. Many researchers have defined information

management differently; Chalee Vorakulpipat, Yacine Rezgui, (2008) defined it as

“systematic way of organising data”, Drucker (2001) described it as “Endowment of data

with relevance and purpose” and according to Probst et al. (2002) it is “art of interpreting

data”. However, all the definitions converge on a single point that information management is

all about managing data in a way that useful information can be extracted from it. On the

other hand, defining knowledge management is a much tricky as it originates and resides in

the minds of individuals. Davenport and Prusak (1998) argue that knowledge management

relates to handling the available and perceived blend of experiences, values, contextual

information and intuition; and then incorporating new experiences and information in a cyclic

fashion.

In case of knowledge, individuals play a prominent role as creators, carriers, conveyors and

users. From a management perspective, information is easily identified, organised and

distributed whereas knowledge cannot really be managed because it resides in minds of

individuals. Therefore, knowledge management is restricted to creating conducive conditions

for individuals to learn from the available information resources and then apply their

knowledge to the benefit of their organisation. The application of an individual‟s knowledge

may be translated into relevant information (documents, best practices, databases, etc) which

can be shared and used. Nonaka and Takeuchi (1995) argue that explicit knowledge is a

synonym for the word “information” and this latent interplay between knowledge and

information have led many practitioners to perceive that information management and

knowledge management are interchangeable terms. Whereas, there exists a clear distinction –

information management is not at all concerned with the phenomenon and processes involved

in knowledge creation and innovation.

Knowledge management systems should take a holistic or organic view of the organisation

and should encompass initiatives in the areas of information management, organisational

structure and internal communications. The knowledge management processes are complex

as transformation of information into knowledge highly depends on individuals‟ willingness

to create, act, share and codify their own knowledge. Further, knowledge management is

much dependent on solid support of IT infrastructure particularly in the scenarios where

different functional units of an organisation are geographically dispersed. Return on

Investment (ROI) is the prominent criteria to gauge the success of information management

tasks and this makes the knowledge management very distinct from information management

which heavily relies on IT. Another difference between information and knowledge

management is that information management does not take into account how people learn,

create, validate, codify, share knowledge and make decisions.


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II. Literature Review

Theoretically, the knowledge management discipline can be viewed as a direct inheritor of

the field of organisational learning. According to Edgar Schein (1993), knowledge

management can be seen in the context how individuals and an organisation can learn

continuously through self-learning and systemic thinking. Knowledge can be considered as a

stock and learning as the flow of knowledge. The competitiveness of an organisation is based

on its available stock of knowledge (explicit knowledge) and on the flow of individual and

organisational knowledge (tacit and explicit knowledge).

2.1 Extracting Knowledge

Understanding the knowledge management requires comprehension of knowledge and

managing knowledge processes and how they differ from information and information

management. Haeckel and Nolan (1993) proposed a pyramid shaped hierarchy of the

transformation of facts into knowledge that leads towards wisdom (Fig.1).

Fig. 1: Knowledge hierarchy: From facts to wisdom.

The theme of their proposed hierarchy is: “less is more valuable”. A visit from bottom

towards the top in the hierarchy increases the value, structuredness and subjectivity of the

material; whereas, a journey from upward direction towards the bottom of the pyramid

increases volume, completeness and objectivity of the material. In the knowledge extraction

process, information is extracted from the available facts or data and in the next step

information is transformed into an intelligence form which finally leads to producing

knowledge. The ability and foresight into the application of the extracted knowledge in

certain area is surfaced as wisdom of an individual or organisation.

Data and information are codifiable, explicit and easily transferable; whereas, intelligence is

extracted through human judgement and intuition. Wisdom is purely contextual and tacit and

its transfer from one individual to another requires considerable learning efforts on the part of

the learner. Once actionable knowledge in discovered in certain area of an organisational

process, the foremost step is to document it which is considered as the rudimentary stage of

knowledge management.


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2.2 Knowledge Generating Cycle

Knowledge management is a cyclic activity to refine the acquired knowledge as well as to

generate new knowledge. The ability to use existing knowledge for creating further

knowledge is vital for the organizations. Basic theme that underlies the knowledge

management techniques is illustrated in Fig. 2 which depicts the processes involved in

knowledge generation cycle.

Fig. 2. Knowledge Management Cycle.

Everyone learns while doing certain work; the learnt knowledge is recorded or created and is

stored in some hard or soft form for future retrieval. The knowledge thus acquired is used or

shared subsequently to perform similar type of work. Organizations also refine the acquired

knowledge on the basis of new experiences and innovation can occur at any stage of the

knowledge generation cycle.

2.3 Organizational Learning Process Knowledge is essence of the competitive edge of an organization and it is embedded in

processes, products, systems and controls of an organization. Knowledge is versatile in nature

and can be transferred formally through training or informally through workplace

socialization. Fig. 3 shows an organization learning model.


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Fig. 3. Organizational Learning Process Model

2.4 Roots of Knowledge Management

Knowledge management is attributed to managing six different areas; innovation,

information management, knowledge-based systems, intellectual capital, learning

organization and business transformation. Innovation takes impetus from “out of the box”

thinking. There is a need to establish a “learning culture” within the organisations for

effective knowledge exchange; and such type of organisations are called learning

organisations. The “learning culture” within the organisation identifies areas where

appropriate changes in the organisational behaviour can improve knowledge exchange. Fig. 4

illustrates the learning management model comprising the aforementioned six areas.

Fig. 4. Roots of Knowledge Management


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III. Critical Evaluation

Table I. Critical Analysis of Knowledge management methodologies

Author/ Reference Method/

Technique

Key Characteristics Key points

DiMattia & order

(1997)

Defining knowledge

management in

various formats

Comparison among

knowledge

management and

technology platform

Motivates use of

technology as a

essential part in

improving

knowledge

management.

Mcinerney. &

LeFevre(2000)

Defining knowledge

management as

different terms

Comparison of

different techniques

for knowledge

management

Emphasis on

different method

used for

transferring

knowledge

internally to the

organization and its

employees

Alavi & Liefner

(1999)

Categorization of

techniques

Knowledge

management

categorization into

different sectors

Defines the

perspective of

knowledge

management with

different sectors

Haeckel & Nolan

(1993)

Solving the

complexity

Describes

dependency or

Organizational

Complexity

Defines three

quotient for

determining the

organizational

complexity

Skyrme & Amidon

(1997)

Observation of

Employees using

different techniques

Problems in using

knowledge

management

Focuses on

knowledge that is

well known in the

organization but

employees are not

aware of it.

Chalee

Vorakulpipat,

Yacine Rezgui,

(2008)

Systematic

Methodologies

Identification of

different

methodologies

Defines different

systematic

methodologies for

organizing and

using knowledge

management

techniques

Drucker (2001) Relevance and purpose

techniques

Identification of

relevant data

Describes the data

in format of

relevance and

purpose for it to be

used.

Probst et al. (2002) Different Interpretation of data Describes data


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methodologies for

interpretation

in different scenarios solutions and their

interpretation as an

art

Davenport &

Prusak (1998)

Data handling

methodologies

Experience based

approach

Intuition to use the

knowledge

Argues on

knowledge

management usage

among different

environments and

organizations

Nonaka &

Takeuchi (1995)

Explicit Knowledge Defining new terms

for knowledge

management

Argues between

explicit knowledge

and information

technology

Edgar H. Schein

(1993)

Context Driven

Approach

Stock learning

management

Defining

knowledge

management in

context of

individuals and

organizational

level

IV. Future Work

The perspective future work to this research could be to look into formulating a robust model

for knowledge management associated with various business and organizational processes.

Particularly, a number of processes are prone to knowledge management related to cost,

schedule and quality of the products and services. The model will be supplemented with a

framework that will deal with the knowledge management techniques and improvement of

processes that are closely linked with the successful implementation of knowledge

management techniques and will be validated through a case study. The future perspective

also covers implementation of model in real time environment.

V. Conclusion

This study highlighted a critical overview of different technique that can considerably

improve the quality and productivity of organizations. Besides, the study also looked into the

probable methods that can be effectively adopted organizational improvement using the

knowledge management methodologies. This study analysed the key concept of Knowledge

management with particular reference to organization, individual and business perspective.

The main contribution of this study is that it provides an insight into the current

understanding of Knowledge management amongst many practitioners, current applications

and practices of Knowledge management and the level of research activities being carried out

in this field.

VI. References

1. Alavi & Liefner, (1999). Review: Knowledge Management and Knowledge

Management Systems: Conceptual Foundations and Research Issues


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

2. Chalee Vorakulpipat, Yacine Rezgui, (2008) "An evolutionary and interpretive

perspective to knowledge management", Journal of Knowledge Management, Vol. 12

Iss: 3, pp.17 – 34

3. David Skyrme, Debra Amidon, (1997) "The Knowledge Agenda", Journal of

Knowledge Management, Vol. 1 Iss: 1, pp.27 – 37

4. DiMattia, S., & Oder, N. (1997, September 15). Knowledge management: Hope,

hype, or harbinger? Library Journal, 122(5), 33–36.

5. Davenport, T. H., and Prusak, L. (1998). Working knowledge: How organizations

manage what they know. Boston: Harvard Business School Press.

6. Edgar Schein (1993). How can Organizations Learn Faster? The Challenge of

Entering the Green Room

7. Haeckel and Nolan (1993). Knowledge Management and Dynamic Nature of

Knowledge, Journal of American Society for Information

8. McInerney, C., & LeFevre, D. (2000). Knowledge managers: History and challenges.

In C. Prichard, R. Hull, M. Chumer, & H. Willmott (Eds.), Managing knowledge:

Critical investigations of work and learning.

9. Nonaka and Takeuchi (1995). Book: Knowledge creating company

10. Stewart, T.A. (2001). The wealth of knowledge: Intellectual Capital and the twenty-

first century organization. New York: Currency.

11. Streng, D.J. (1999). Knowledge Management: An essential framework for corporate

library leadership. Advances in Library Administration and Organization, 16, 1–30.

12. Thoreau, H.D. (1849, 1906). The writings of Henry David Thoreau. New York:

Houghton Mifflin Company. Tucker, A.G. (1998). From information to knowledge:

The new competitive asset. In Knowledge Management: A new competitive asset.

1997 State of the Art Institute. Washington, DC: Special Libraries Association.

13. Von Krogh, G., Ichijo, K., & Nonaka, I. (2000). Enabling knowledge creation: How

to unlock the mystery of tacit knowledge and release the power of innovation. Oxford:

The Oxford University Press.

14. Whitley, E.A. (2000, February). Tacit and explicit knowledge: Conceptual confusion

around the commodification of knowledge. Presented at the Knowledge Management:

Concepts and Controversies Conference, Warwick, England.

http://is.lse.ac.uk/staff/whitley/. Accessed October 12, 2001.

Zack, M. (1999, Summer). Managing codified knowledge. Sloan Management

Review, 40(4), 45–58


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A Survey of Security Approaches for Wireless

Adhoc Networks

Engr. Saad Masood Butt (Pakistan)

BS (Software Engineering) degree from Bahria University Islamabad.

Currently, he is pursuing his PhD degree in the department of Computer and Information Sciences at University

Technology PETRONAS, Malaysia.

Abstract

As the popularity of mobile devices and wireless networks significantly increased over the

past years. The wireless adhoc network has now become one of the most vibrant and active

fields of communication and networking research. These networks are a new generation of

networks offering unrestricted mobility without any underlying infrastructure. As their

principle application is in disastrous environments, security is critical. Various challenges are

faced in the adhoc environment, mostly due to the resource poorness of these networks. One

man confront in the design of these networks is their vulnerability to security attacks. The

solutions for conventional networks are usually not sufficient to provide efficient adhoc

operations. Just because of its wireless nature of communication and lack of any security

infrastructure raise several security problems and threats.

In this paper, we briefly review the threats an adhoc network faces and the security goals to

be achieved. Moreover, it also presents existing security schemes used in wireless adhoc

networks in order to handle security threats.

Keywords: Adhoc network, Security, IEEE 802.11, Attacks

I. Introduction

With the advancement in wireless technologies like Bluetooth, IEEE 802.11, a new concept

of networking has emerged. This is known as adhoc networking where mobile users arrive

within the defined range of the wireless link and participate in setting up the network for

communication [1].

Adhoc networks are a new model of wireless communications for wireless hosts or nodes. In

an adhoc network there is no supporting infrastructure such as base stations, access points or

wireless switching centers.

An adhoc network can be established as soon as two or more nodes are within each other's

transmission range. Nodes within range communicate directly, while nodes further apart rely

on other nodes to convey messages for them. If the nodes in the network are mobile, then the

topology of the network frequently changes [1].

Lack of infrastructural support and susceptible wireless link attacks, security in adhoc

networks becomes inherent weakness. Providing adequate security measures for adhoc

networks is a challenging task.


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One of the challenging issues is dynamic because of frequent changes in both its topology

and its membership. Trust relationship among nodes also changes, for example, when certain

nodes are detected as being compromise. The dynamic topology and the absence of a

supporting infrastructure render most of the existing cryptographic protocols useless as they

were not developed for this dynamic environment. It is desirable that security mechanisms

should be to adapt on-the-fly to these changes in topology.

Secondly, Wireless communications are easy to intercept. It is also easy to actively insert or

modify wireless messages. This means that unprotected wireless networks are open to a wide

range of attacks, including node impersonation, message injection, loss of confidentiality, etc.

Thirdly, in many situations the nodes may be left unattended in a hostile environment (e.g., a

battlefield). This enables adversaries to capture them and physically attack them. Proper

precautions are required to prevent attackers from extracting secret information from them.

Even with these precautions, we cannot exclude that a fraction of the nodes may become

compromised. This enables attacks launched from within the network.

Finally, an adhoc network may consist of thousands of nodes. So security mechanisms should

be scalable to handle such a large network.

Security is as important in adhoc networks as it is important in traditional networks like the

Internet. Sensitive data should be protected from malicious eavesdroppers and network

services should only be provided to eligible users [2]. As adhoc networks do not have any

predefined infrastructure and all network services are configured and created on the fly. Due

to this reason security is a critical issue of adhoc networks. Since nodes use the open, shared

radio medium in a potentially insecure environment, they are particularly prone to malicious

attacks, such as denial of service (DoS). Lack of any centralized network management or

certification authority makes the dynamically changing wireless structure very vulnerable to

infiltration, eavesdropping, interference.

Based of above mentioned challenges and threats we organize our paper as follows: Section 2

gives the review on wireless adhoc network. Section 3 describes the Security goal to be

achieved in wireless adhoc network. Section 4 describes different type of attacks in wireless

ah hoc network. Section 5 present types of exiting security schemes for wireless adhoc

network and why they are essential for it. Section 6 presents security architectures for

wireless ad hoc network. Section 7 concludes the paper.

II. Related Work

Security in wireless adhoc networks has recently gain a momentum and became a primary

concern in attempt to provide secure communication in a hostile wireless adhoc environment.

Achieving security performances in wireless adhoc environment is a challenging task. It is

difficult to differentiate between malicious network activity and specific problems associated

with an adhoc networking environment. In an adhoc network, malicious nodes may enter and

may collude with other malicious nodes to disrupt network activity and avoid detection. For

this many security schemes have been proposed to deal with security aspects in wireless


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adhoc networks although neither of them has succeeded to completely achieve all security

goals.

Self-securing approach to node authentication in wireless adhoc networks is presented by

Haiyun Luo [3]. This approach provides scalable, distributed authentication services in adhoc

networks. He designed to takes a self securing approach, in which multiple nodes

collaboratively provide authentication services for other nodes in the network. He proposed a

localized trust model that lays the foundation for the design, together with its realization to

address networking issues of node mobility, network dynamics and wireless channel errors. A

scalable share update scheme is developed, and several optimization techniques that greatly

enhance the efficiency and robustness of that algorithms and protocols were proposed.

Through localized design, he ensured the scalability of the architecture to facilitate practical

deployment in a potentially large scale network with dynamic node membership.

Where as Srdjan Capkun [4] have provided a solution to the difficult problem of setting up

security associations in wireless adhoc networks. He proposed a technique in which security

associations between nodes are established, when they are in the vicinity of each other, by

exchanging appropriate cryptographic material. He has illustrated this approach by explaining

with two application scenarios: fully self-organized networks and networks with an off-line

authority. For the first scenario, he showed that the mechanism is highly understandable by

the user, as it reproduces the concept of friends and leverages on physical encounters; these

encounters make it possible for a user to associate a face to a given identity (and to a given

public key), solving many of the problems of classical security mechanisms. For the second

scenario, he showed how adhoc networks that are secured with a central authority can also

benefit from mobility. More specifically, a direct establishment of security associations over

the one-hop radio link solves the problem known as the security-routing interdependency

loop.

III. Security Goals

Security is a critical issue of adhoc networks that is still a largely unexplored area. Since

nodes use the open, shared radio medium in a potentially insecure environment, they are

particularly prone to malicious attacks, such as denial of service (DoS). Lack of any

centralized network management or certification authority makes the dynamically changing

wireless structure very vulnerable to infiltration, eavesdropping, interference etc. Security is

often considered to be the major “roadblock” in commercial application of adhoc network

technology.

Security is an important issue for adhoc networks, especially for those security-sensitive

applications. To secure an adhoc network, we consider the following attributes: availability,

confidentiality, integrity, authentication, and non-repudiation.

Availability ensures the survivability of network services regardless of denial of service

attacks. A denial of service attack could be launched at any layer of an adhoc network. On the

physical and media access control layers, an opponent could employ congestion to interfere


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with communication on physical channels. On the network layer, an opponent could disrupt

the routing protocol and cut off the network. On the upper layers, an opponent could bring

down high-level services. One such target is the key management service, an essential service

for any security framework [5].

Confidentiality ensures that certain information is never disclosed to illegal entities. Network

transmission of sensitive information, such as strategic or tactical military information,

requires secrecy. Leakage of such information to enemies could have shocking consequences.

Routing information must also remain confidential in certain cases, because the information

might be valuable for enemies to identify and to locate their targets in a field.

Integrity guarantees that a message being transferred is never ruined. A message could be

ruined because of benign failures, such as radio transmission impairment, or because of

malicious attacks on the network.

Authentication enables a node to ensure the uniqueness of the peer node it is communicating

with. Without verification, an opponent could impersonate a node, thus gaining unauthorized

access to resource and sensitive information and interfering with the operation of other nodes.

Finally, non-repudiation ensures that the source of a message cannot disagree with having

sent the message. Non repudiation is useful for exposure and isolation of compromised nodes

When a node A receives an mistaken message from a node B, non-repudiation allows A to

accuse B using this message and to encourage other nodes that B is compromised.

Traditional security mechanisms, such as authentication protocols, digital signature, and

encryption, still play important roles in achieving confidentiality, integrity, authentication,

and non-repudiation of communication in adhoc networks. However, there are other security

goals that are of concern to certain applications such as authorization, anonymity, self-

stabilization, Byzantine robustness, location privacy, etc [6]. The security of adhoc networks

also has to consider features such as privacy, correctness, reliability and fault tolerance.

IV. Attacks in Adhoc Networks

A threat in a communication network is a potential event or series of events that could result

in the violation of one or more security goals. The actual implementation of a threat is called

attack. Wireless adhoc networks are target for all the threats that occur in fixed networks, i.e.,

masqueraded identities, authorization violations, eavesdropping, data loss, modified and

falsified data units, repudiation of communication processes and sabotage. Moreover, the

existence of the wireless transmission links and dynamic network topology contributes

considerably towards increasing the threat potential.

Types of Attacks

Attacks against adhoc networks are generally divided into two groups:

1. Passive attacks (typically involve only one eavesdropping of data)


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2. Active attacks (involve actions performed by adversaries, such as replication,

modification and deletion of exchanged data)

Attacks are considered as external attacks if they are targeted to cause congestion, propagate

incorrect routing information, prevent services of working properly or shutdown them

completely. External attacks can be active or passive. External active attacks that can be

usually easily performed against adhoc network are: black hole, routing table overflow,

sleeps deprivation and location disclosure. External active attacks can usually be prevented

by using standard security mechanism such as firewalls, encryption, etc [6].

Internal attacks are more severe attacks, since malicious nodes have already been authorized

and are thus protected with the security mechanisms the network and its services offer. These

kind of malicious parties are called compromised nodes. They may operate as a group using

standard security protection to protect their attacks, compromising the security of the whole

adhoc network. Attacks can also be classified as malicious or rational. Malicious attacks aim

to harm the members or the functionality of the network, involving any means disregarding

corresponding costs and consequences.

According to the affected mechanisms, two levels of attacks can be distinguished:

1. Attacks on basic mechanisms of adhoc network (e.g., the routing)

2. Attacks on security mechanisms (e.g., the key management)

Vulnerabilities of the basic mechanisms, include cooperativeness of the nodes (attempt to

work according to the rules in order to have fair allocation of resources), node selfishness

(deny to relay packets for other nodes in order to save battery), neighbor discovery (as in

Bluetooth), etc. Vulnerability of security mechanisms points out the importance of a good

cryptographic design with proper management and safe keeping of a small number of

cryptographic keys [7]. With node mobility and variable these objectives are not trivial.

Nodes that perform active attacks with the aim of damaging other nodes by causing network

outage are considered as malicious, while nodes that perform passive attacks aiming to save

battery life for their own communications are considered selfish. Functionalities of different

layers can be threat of different security attacks. Below Figure1 gives a classification of

attacks possible in wireless adhoc networks. The following subsections present different

types of attacks and the way they compromise security.


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a. Denial of Service

The denial of service (DoS) can produce a severe security risk in any network. This threat is

produced either by unintentional failure or by malicious actions. The consequences strongly

depend on particular application. For instance, in the battlefields scenario, the consequences

of shutting down the network can be catastrophic, while during the conference connection in

the conference room, it may only cause some disturbances. The denial of service attack has

many forms. The classical way is to flood any centralized resource, which can disturb its

correct operation or completely crash it. Adhoc networks which exist without centralized

infrastructure are more sensitive to distributed denial of service attacks. So, if the attackers

have enough computing power and bandwidth for their operation, they can easily crash and

congest the smaller adhoc networks. Compromised nodes can initiate severe threats to adhoc

networks if they are able to modify the routing protocol (or part of it) and send the routing

information very frequently. It can cause congestion or even prevent nodes to gain new

routing information about the changed network topology. If the compromised nodes and if

the changes of the routing protocol are not detected, the consequences are severe (even the

network seems to operate normally). This invalid operation initiated by malicious nodes in

adhoc networks is called a Byzantine failure.

b. Impersonation

Impersonation attacks can be serious security risk in adhoc networking, concerning critical

operations in all levels. Compromised nodes can masquerade itself as trusted nodes and

initiate false or even dangerous behavior such as sending false routing information, gaining

access to configuration system as a super-user, certify public key without proper credentials,

give false status information to other nodes, etc. Impersonate or masquerade threats are

mitigated by applying strong authentication mechanisms. Authentication provides a party to

be able to trust the origin of data it receives or stores. It usually is performed in every layer by


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application of digital signatures or keyed fingerprints over routing messages, different

information (configuration or status) or exchanged payload data of the used services. Digital

signatures and public-key cryptography requires relatively significant computation power and

secure key management, which is inappropriate for wireless adhoc network capabilities.

Lighter solutions include keyed hash functions or a priori negotiated and certified keys and

session identifiers.

c. Disclosure

Exchanging confidential information must be protected from eavesdropping and unauthorized

access. In adhoc networks, confidential information can concern specific status details of a

node, location of nodes, private or secret keys, passwords, etc. The disclosure of the

exchanged or stored information can be especially critical in military applications.

d. Trust Attacks

Trust is a privilege associated between the identity of the user with particular trust level. So, a

trust hierarchy is an explicit representation of trust levels. Attacks on the trust hierarchy can

be initiated by inside or outside nodes, if they try to impersonate anyone else and obtain

higher level privileges. Different mechanisms can be used to protect against trust attacks,

such as strong access control mechanisms (Authentication, Authorization and Accounting or

AAA) and cryptographic techniques (encryption, public key certificates, and shared secrets).

Some techniques to prevent insider attacks include secure transient association and tamper

proof and tamper resistant nodes [6].

e. Attacks on Information in Transit

Compromised or enemy nodes can utilize the information carried in the routing protocol

packets to launch attacks. These attacks can cause corruption of the information, disclosure of

sensitive information, misusing of the legitimate service from other protocol entities or even

denial of service. Threats to information in transit include: interruption, intersection and

subversion, modification of the information integrity, and fabrication, i.e., insertion of false

routing information.

f. Attacks against Secure Routing

Attacks against secure routing are severe threat to adhoc networks. Internal attacks are

difficult to differentiate, because the network topology dynamically changes. Malicious nodes

can disrupt the correct functioning of a routing protocol by modifying routing information,

fabricating false routing information and by impersonating other nodes. Malicious nodes can

easily perpetrate integrity attack, by simply altering protocol fields in order to subvert the

traffic. A special case of integrity attack is spoofing. A malicious node impersonates a

legitimate node due to the lack of authentication in the current adhoc routing protocols. It can

result in miss presentation of network topology and undesirable network loops or network

portioning.


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Another type of active attack is the creation of a tunnel or wormhole attack. During this

attack, two colluding malicious nodes link through a private connection (i.e., tunnel)

bypassing the network. This allows a node to short circuit the normal flow of routing

messages and creates a virtual vertex cut in the network. This is controlled by the two

colluding attackers. Lack of cooperation among adhoc nodes due to node selfishness can

result in denying participation in routing protocol or forwarding packets. The selfishness

problem may cause so called black hole attack [8].

V. Security Schemes in Adhoc Networks

It is difficult to differentiate between malicious network activity and specific problems

associated with an adhoc networking environment. In an adhoc network, malicious nodes

may enter and leave the immediate radio transmission range at random intervals or may

collude with other malicious nodes to disrupt network activity and avoid detection. Malicious

nodes may behave maliciously only occasionally, further complicating their detection.

Dynamic topologies make it difficult to obtain a worldwide view of the network and any

estimate can become quickly obsolete. Many security schemes have been proposed to deal

with security aspects in wireless adhoc networks although neither of them has succeed to

completely achieve all security goals.

Link-layer security schemes protect the one-hop connectivity between two direct neighbors

that are within communication range of each other through secure MAC (medium access

control) protocol. The most prevalent security solutions among wearable wireless devices are

presented in data-link-layer security schemes implemented in IEEE 802.11[9] and Bluetooth

standards [10]. IEEE 802.11, primarily using vulnerable WEP (wired equivalent privacy)[11],

has been enhanced into IEEE 802.11i/WPA version. The Target Group TGi proposed long-

term architecture based on IEEE 802.1x that supports various authentication modes.

Bluetooth specification includes a set of security profiles for service-level and for data-link-

layer security [12].

Particular attention is dedicated to authentication schemes that deal with problems from

simple authentication approaches, such as in resurrecting duckling [13], zero configuration

(where nodes must be able to authenticate each other without any infrastructure [8]) and face-

to-face authentication over short-range link in small spontaneous networks [14], up to the

large scale self-organized distribution concepts (for key-based and cryptography-based

schemes) and trust graphs which behave like small world graph and appropriate certificate

chains necessary to verify any public key. Scalable distributed authentication is achieved in

self-securing adhoc wireless networks combined with localized trust model [3].

Cooperative security schemes try to cope with node selfishness in a different way. It

proposes and introducing a virtual currency for any transaction in order to motivate node

participation. Neighbor‟s verification of well behaved nodes through token release is

implemented in [15].


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Secure packet forwarding schemes provide protection against node‟s failure to correctly

forward data packets and consists of detection technique and reaction scheme. An example of

localized detection and end-host reaction are watchdog and path rather proposed in [16].

a. Intrusion Detection

Intrusion detection includes capturing audit data and providing evidence if the system is

under attack [17]. Based on the type of the used audit data, the intrusion detection system

(IDS) can be categorized as network-based and host-based. The former usually runs on the

gateway of a network and exams the packets that go through the network hardware interface,

while the latter monitors and analyzes the events generated by programs or users on the hosts

[18]. The techniques used in intrusion detection systems can be classified as: misuse

detection (use patterns of known attacks) and anomaly detection (flag deviation of known

attacks). Both techniques rely on sniffing packets and using those packets for analysis [19].

Zhang and Lee [17] in propose architecture for intrusion detection and response where every

node in the wireless adhoc network participates in intrusion detection and response through

individual IDS agents. Since there are no fixed “concentration points”, where real-time traffic

monitoring can be done, audit collection is limited by the radio-range of the devices.

Anomalies are not easily distinguishable from localized, incomplete and possibly outdated

information which makes anomaly detection schemes not directly applicable in wireless

adhoc networks. So, the authors in [17] propose a new architecture for IDS, based on IDS

agents. Intrusion detection complements intrusion prevention techniques such as encryption,

authentication, secure MAC, secure routing and so on, improving the network security. To be

efficient, it should have distributed and cooperative architecture and preferably implement

anomaly detection. Further improvement can be achieved if it is incorporated into all

networking layers and in an integrated cross-layer manner.

b. Secure Routing in Wireless Adhoc Networks

The routing in wireless adhoc networks can not rely on dedicated routers as in wire line

networks. This functionality is spread over all nodes which act as regular terminals as well as

routers for other nodes. Providing secure routing in such environment faces many problems

specific for adhoc networking and requirements to resist to possible security attacks. Most of

the well known routing protocols for adhoc networks do not include security aspects. The

protection against vulnerability of wireless adhoc networks from different security attacks

and especially attacks at the networking layer must fulfill certain requirements [20].

Severe threat against adhoc routing is the wormhole attack which can completely disable the

routing and disrupt the communication. Number of proposals for detection of a wormhole use

approach based on packet leashes (e.g., temporal leashes, geographical leashes)

A lot of different approaches are proposed in order to achieve security-aware routing in

wireless adhoc networks. They implement different mechanisms such as strong encryption,

digital signatures, timestamps, secret-key cryptography, hashing function, MACs, etc. Below


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Table presents the most important security-aware routing properties and appropriate resolving

techniques.

Secure aware routing properties and techniques

Authenticity Password,

certificate

Authorization Credentials

Integrity Digest, digital

signature

Confidentiality Encryption

Non-repudiation Changing of digital

signatures

Timeliness Timestamp

Ordering Sequence number

Several security routing protocols are briefly discussed in the following subsections.

SRP The secure routing protocol (SRP) can be applied to a multitude of existing reactive

routing protocols to protect against attacks that disrupt the route discovery process and

guarantee the acquisition of correct topological information [21]. This protocol guarantees

that fabricated, compromised or replayed route replies would either be rejected or never reach

back to the querying node.

SAR The security aware adhoc routing protocol (SAR) defines level of trust as a metric for

routing and as one of the attributes for security which is taken into consideration while

routing [22]. Different privileged levels and levels of trust can be defined among the nodes

following the desired trust hierarchy. Nodes at each trust level share symmetric keys for

encryption/decryption distributing a common key among themselves and with nodes with

higher level of trust. However, the protocol requires different keys for different level of

security, which increases the total number of keys in the network.

SEAD The secure efficient adhoc distance vector (SEAD) routing protocol is based on the

destination-sequenced distance vector (DSDV) routing protocol [23] designed to overcome

the DoS and resource computation attacks. SEAD was inspired by DSDV-SQ routing

protocol (a beneficial version of DSDV) and deals with the attackers that modify the

sequence number and the metric field of a routing table update message. To secure the

DSDV-SQ [24] routing protocol, SEAD implements the one-way hash chain and does not

rely on expensive asymmetric cryptography. Security mechanisms implemented in SEAD are

authentication of sequence number and metric of a routing table update message using hash

chain elements. The receiver also authenticates the sender of SEAD routing information in

attempt to eliminate malicious nodes (either by implementation of a broadcast authentication

mechanism.


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ARAN The authenticated routing for adhoc networks (ARAN) routing protocol is based on

cryptographic certificates and provides protection against malicious actions carried by third

parties and peers in the adhoc environment. The implemented minimum security approach

introduces authentication, message integrity and non-repudiation [25] and consists of a

preliminary certification process followed by a mandatory end-to-end authentication (and an

optional second stage that provides secure shortest path).

ARIADNE On-demand secure routing protocol (ARIADNE) is based on DSR and relies

only on highly efficient symmetric cryptography [26]. It needs some mechanism to distribute

the authentic keys required by the protocol. Each node needs a shared secret key (between a

source and a node), an authentic key for each node in the network and an authentic route

discovery chain element for each node. ARIADNE provides point-to-point authentication of a

routing message using a message authentication code (MAC) and a shared key. However, it

does not protect against wormhole attacks, except in its advanced version.

S-AODV Security-aware AODV (S-AODV) protocol is an efficient solution to eliminate a

black-hole attack caused by a single malicious node [27]. A malicious intermediate node

could advertise that it is the shortest path to the destination resulting in the black-hole

problem. Proposed solutions deal with limitations in generating a route reply packet or are

realized through checking the neighbors of the malicious intermediate node. The S-AODV

protocol assumes that each intermediate node can validate all transit routing packets. The

originator of a control message appends a RSA signature and the last element of a hash chain.

A message traverses the network and the intermediate nodes cryptographically validate the

signature and the hash value. S-AODV requires considerable control overhead and is

incapable of dealing with malicious nodes that work in a group.

VI. Security Architectures for Adhoc Networks

Most of the security schemes concentrate on intrusion detection, secure routing,

authentication and key management aiming to provide protection against particular security

attack or attacks. There are several attempts to provide generic approach defining generic

security architectures for wireless adhoc networks which usually jointly considers more than

one security schemes. Examples of such approaches are: group collaboration architectures,

general intrusion detection architecture, a subscription less service architecture, Archipelago

security architecture, layered architecture, integrated architecture, etc. Following sections

give a short description of several such architectures.

Group collaboration security architectures present security models and mechanisms capable

of supporting group collaboration in wireless adhoc networks. Short term or long term

collaboration and sharing of resources require effective security models that allow such

grouping to work. The basic of these models are context sensitive security and developing of

object-centered group interaction models for collaboration in wireless adhoc networks. For

this security approach many open questions are still under consideration [28].


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

Hierarchical hybrid networks present security architecture capable of defending against link

attacks. Wireless nodes are structured into groups. The security schemes utilize

encryption/decryption and public key based authentication techniques [29].

Cluster-based security architecture for securing communication in mobile adhoc networks

which is highly adaptable to their characteristics [30]. They divided the network into clusters

and implemented a decentralized certification authority. Decentralization is achieved by

using threshold cryptography and a network secret distributed over a number of nodes.

Different types of keys (symmetric cluster key, asymmetric public key) and certificates can

be used in communication. Nodes decide adaptively about the security level and appropriate

encryption (no encryption, secret cluster key for intra-cluster only, public node keys directly

exchanged or public node keys certified by the cluster head node).

A new framework for multicast (tree-based) security proposed in [31] concerns with the

security in large dynamic multicast groups, involving a one-to-many communication pattern,

with a dynamic set of recipients. This framework addresses the conflicting requirements

(scalability and security) and defines basic properties of set of cryptographic functions that

assure confidentiality (either for encryption of bulk data or only for encryption of short

messages as required by key distribution) including intermediate components.

VII. Conclusion

This paper gives an insight in the security problems and solutions of wireless adhoc

networks. Wireless adhoc networks impose additional challenges in front of the designers,

due to the lack of infrastructure and the dynamic and ephemeral character of the relationship

between the network nodes. They require more sophisticated, efficient and well designed

security mechanisms to achieve security goals. Increasing number of adhoc networking

applications emphasize a need for strong privacy protection and security mechanisms.

Security in adhoc networking is a huge topic and this paper gives an overview of the most

relevant issues. It defines security goals and possible threats and attacks, explains major

security mechanisms and schemes and presents several security architectures. [32]

There are still many challenges ahead. Security features intend to be embedded in adhoc

devices providing secure link layer functionalities. Efficient use of computation resources and

guarding against parasitic computation is another challenge. The research in the area of

authentication and key management concentrates on designing cryptographic algorithms that

should be efficient in sense of computational and message overhead. Variety of broadcast and

multicast scenarios are still waiting to be resolved. Designing self-enforcing privacy policies

and enhancing privacy mechanisms are challenging issues for ubiquitous computing

environments.

Acknowledgments

We would like to thank Dr. Munir Naveed for his invaluable contributions to this work.


ISSN-2320-8848(O.)/2321-0362(P.) March, 2013

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